posted on September 17, 2002 08:37:20 AM new
Yes, this is my first post under this ID, but I have been "lurking" for quite some time and find many of the topics interesting and helpful.
I have been selling a little here and there on E-Bay for 3 years and have the opportunity
to obtain some goods but need a federal tax ID to do so. Do some of you that sell, have one and could you please mention some of the pros and cons of having one? - beside having to file taxes-I know that.
posted on September 17, 2002 09:31:52 AM new
Are you sure it's the fed id you need? In all the states I have lived in, wholesalers and dealers require a state tax resale certificate to bypass your paying sales tax. As for the fed tax id, if you don't have one, your ss # is usually sufficient (such as on income tax forms)
posted on September 17, 2002 09:45:13 AM new
rgrem is right.
Unless you are incorporated, or perhaps a partnership, your SSN is your fed tax #
Just get a state sales tax resale #
posted on September 17, 2002 09:52:23 AM new
Thanks for the responses. Here in Oregon there is no sales tax (hopefully it will stay that way) so I'm not sure if I need a state sales tax resale #.
posted on September 17, 2002 09:57:27 AM new
You don't need a resale license, but you might need a business license from your local government, i.e. city or county treasurer or asseser's office.
posted on September 17, 2002 10:58:30 AM new
You can get a federal tax ID as an individual without being a corp. It's handy for buying "wholesale". Many wholesalers will not sell to you without the Fed tax ID - state sales tax officials frown on them accepting a SS# in the transaction- accepting a SS# makes it look as though they may be retailing the merchandise.
I don't know what the downside would be to having a fed tax ID.
posted on September 17, 2002 01:21:32 PM new
For an individual with wage income the SS# is the ID. You can apply for a Fed tax ID for a business or even gambling.
posted on September 17, 2002 07:51:45 PM new
I live in Oregon too, when you sign up with the distributor/wholesaler just explain to them (Which make take a few times) that your state doesn't have a sales tax, and therefore you don't have a reseller's certificate #, at that point they'll probably just have you fill out the certificate the state THEY are in, provide your TIN# and that's it.
My business is incorporated, so a lot of times I don't even have to fill out a certificate, I just give them my EIN# and that's it.
posted on September 17, 2002 09:09:40 PM new
Hi AladdinsGenie,
I am an Oregonian too (love that zero sales tax!) - I have a business license from my city, plus county taxes as well for Multnomah County, as I am in the Portland Metro area. Fortunately, they only charge on sales IN the county, which for me last year was zero - no local sales at all, thus no local taxes. What a great system. I moved from Los Angeles last year, which wanted a percentage of my gross sales, no matter where. They even wanted that AFTER I moved to Oregon last August...Amazing!! For Federal ID, I just use my SS# as I have a DBA, and am the only employee.
posted on September 17, 2002 09:39:40 PM new
ahca and pretegra345,
Thanks for the responses. Just to make things totally clear for this thick-headed genie, I need 1) a EIN and business license or 2)just an EIN or 3) neither-just my SS#.
I only sell online-don't have a brick and mortar store.
No local taxes for me either as I am in Washington County.
posted on September 17, 2002 09:47:51 PM new
You most likely need a city business license. I am in East County, and have one there (it costs $35 a year) - It allowed me to open up a bank account using a DBA. Once I got the city business license, amazingly the county contacted me about the county license. That should be all you need. Whenever it asks for a Tax ID number on any form, I always use my SS#. If you are not sure, I would contact your local city government. Good Luck!
posted on September 18, 2002 08:33:06 AM new
"You most likely need a city business license. I am in East County, and have one there (it costs $35 a year) - It allowed me to open up a bank account using a DBA."
I tried to open a DBA checking account and the bank said I needed a city buisness license to do that.
Went to another bank, they didn't require the bus. license so I opened my checking account there.
Here's why:
The drawback to getting a local bus. license is that the local assessors then send you a form and want to tax you annually on your inventory, office equipment, computer, desk, chair, etc. I pay enough taxes as it is, including local real estate tax.
I do have a state sales tax resale number. But the number they want to assign you by default is your SSN (!!) unless you say assign me a random number. (which I did)
posted on September 18, 2002 10:53:47 AM new
I've had city business licenses in 4 different states now (California, Oregon, Nevada, New York, I move around!) and I've never been subjected to those kind of taxes. It is probably illegal to run a business (even home based) and not be licensed, but it is one of those things that is really impossible to completely enforce. I am also amazed that they let you open a DBA account without the license, that is a mighty friendly bank.
posted on September 19, 2002 11:02:43 PM new
"It is probably illegal to run a business (even home based) and not be licensed, but it is one of those things that is really impossible to completely enforce."
You want to stay on good terms with all your neighbors, then, if you're going to avoid paying for a city business license. Our city acts on complaints and tips from residents.
I'm just waiting for the old grouch down the street to turn me in. In fact, I wish he would. I'd enjoy shoving my paid-up city business license in his face.
The terms of the city license are: 1 employee and no customers visiting the site. No problem!
